Suppose the population of country ABC rises from 40 million to 44 million.If the country's Real GDP rises from $825 billion to $890 billion during this same period,the result is _________________ economic growth.
A) both absolute economic growth and per-capita real
B) absolute economic growth,but not per-capita real
C) per-capita real economic growth,but not absolute
D) neither absolute economic growth nor per-capita real

Question

Quizplus · Accepted Answer

The increase in Real GDP from $825 billion to $890 billion represents absolute economic growth. However, without knowing any information about changes in the population's size or the growth rate of GDP per capita, we cannot determine whether there has been any per-capita real economic growth. Therefore, the best answer is B, which states that there is absolute economic growth but not necessarily per capita real economic growth.

Suppose the Population of Country ABC Rises from 40 Million